Gdex to still benefit from online purchasing if CMCO is li ed
KUALA LUMPUR: GD Express Carrier Bhd (Gdex) has been projected to still benefit from online purchasing which will likely continue trending even if the Conditional Movement Control Order (CMCO) is lifted.
According to the research arm of MIDF Amanah Investment Bank Bhd (MIDF Research), supply chain operations in China have gradually picked up in late March 2020, enabling the delivery firm to clear the backlog of deliveries.
“Due to the MCO, consumers have shifted their spending habits towards online platforms due to the MCO, leading a recovery in parcel volumes in the fourth quarter of financial year 2020 (4QFY20) or 2Q of current year 2020 (2QCY20),” MIDF Research said.
“Gdex’s sorting capacity even hit a high of 180,000 parcels per day. A research study done by Commerce. Asia, an e-commerce ecosystem of technology and big data solutions; saw that the gross merchandise volume growth surged by 149 per cent year on year (y-o-y) in 1Q of 2020 since the MCO was enforced in Malaysia.”
“As a result, a lot of Gdex’s clientele have adapted to digital platform, namely myGDEX online portal which has been launched in late 2018 with the help of its 32.7 per cent-owned associate, Web Bytes.
“Should the CMCO be lifted, the tendency of consumer to remain with online purchasing is high due to the social distancing measures at physical retail outlets.”
MIDF Research highlighted that Gdex’s lean balance sheet with a net cash position of above RM100 million has supported the group’s various expansion plans.